Key Steps to Improve and Advance MRO Chemicals Sourcing
The challenge of procuring MRO chemicals is real and brisk. The products are spanned across thousands of SKUs, leading to huge variation in terms of prices, specifications, contract and other factors. With increasingly complex supply chains for industrial maintenance chemicals, sourcing options has increased leading to compound challenges. As a result, industries and organizations steadily leak value. However there are certain factors that can help to improvise your MRO sourcing.
Here’s step by step process that can help you keep a check on your MRO sourcing portfolio:
1) Map out Saving Opportunities: Your invoice details have a lot of insights. Make a note of product categories in accordance with the level of spend, do not miss out on subcategories. This will provide you with a detailed category tree which will give a good picture of your spending.
2) Request for Proposals: It may not be possible for suppliers to quote prices of all the MRO chemicals. This can be managed by asking for the prices of representative samples of a category. There are means to ask for prices such as manufacturer’s cost plus markup, list price minus discount. Whichever way you choose, make sure to receive quote from all the suppliers in the same way.
3) Evaluate and Select: Thoroughly rate the supplier on the basis of price competitiveness and product coverage. Also rate the non-price metrics such as quality and supply model, for this purpose it is advised to take staff on board which can give important feedback, since they are the end users of the product.
4) Compare and Consolidate Suppliers: Once you get a clear picture of your spending, the next important thing is to work out the supplier list. By consolidating suppliers businesses can focus spend on limited but quality suppliers which proves to be an effective cost saving tactic and promotes effective maintenance of supply chain. It also allows business to achieve expertise knowledge since quality suppliers have professionals who can assist you in providing best maintenance chemicals.
Focus must be placed on sourcing industrial chemicals that serves quality and purpose. The better maintenance chemicals would require fewer applications to achieve the desired goal. Fewer applications implies less product being used, less pollution and less waste.
Technical Beacons has established a reputation as premiers industrial chemical supplier in Saudi Arabia. With years of experience in the MRO chemicals and safety tools, we deliver an exceptional range of high quality products across the whole host of brands ranging from paint sprays and oils, greases and lubricants, additives and compounds, epoxies and putties, sealant and adhesives, cleaners and degreasers, rust remover and others